Find the amount accumulated after investing a principal P for t years at an interest rate r.
-P = $14,000, t = 14, r = 8%, compounded semiannually (k = 2)
A) $41,981.85
B) $41,120.71
C) $27,981.85
D) $40,367.16

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate (in decimal), n is the number of times the interest is compounded per year, and t is the time the money is invested for in years. Here, P = $14,000, r = 0.08 (since 8% = 0.08), n = 2 (compounded semiannually), and t = 14 years. Plugging these values into the formula gives A = 14000(1 + 0.08/2)^(2*14) = $41,981.85.

Find the Amount Accumulated After Investing a Principal P for T